1. Determine the annual Net Operating Income (NOI) and the cash flow before taxes using the assumptions and facts for the following real estate investment:
3. 40 Units
4. Rent per unit is $1,500 per month
5. Vacancy and debt losses are 5% of gross potential income
6. Operating Expenses are $426,000 per year
7. Debt service is 106,000, which includes $90,000 in interest

Depreciation expense is $46,000 per annum.

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